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On Wednesday, Congressman Dan Lipinski (IL-3) voted for the Senate amendment to H.R. 674 to help more veterans obtain jobs by providing tax credits for businesses that hire unemployed veterans and by providing veterans with additional education and training benefits. The bill also helps thousands of small businesses by eliminating a burdensome new requirement that all government contracts withhold three percent of payments. The measure passed the House on a unanimous vote and now goes to the President for his signature.

“We have our veterans to thank for our freedom,” Rep. Lipinski said. “Their reward when they leave the ranks of our Armed Forces should not be to join the ranks of the unemployed. As bad as the unemployment situation is for the nation as a whole, it is even worse for those who have served and sacrificed for our nation. That’s why I was glad to vote for this bill and to see it pass the House with overwhelming bipartisan support. I remain committed to making sure that America upholds its obligations to those who have fought to defend us.”

The legislation, which is fully paid for, provides businesses with a tax credit of up to $5,600 for hiring veterans who have been out of work for more than six months and a tax credit of up to $2,400 for hiring veterans unemployed for between four weeks and six months. It also provides a tax credit of up to $9,600 for hiring veterans with service-connected disabilities who have been looking for a job for more than six months.

The bill will also provide approximately 100,000 unemployed veterans with up to one year of additional Montgomery GI benefits for education or training programs and provide disabled veterans up to one year of additional Vocational Rehabilitation and Employment Benefits.

A new requirement that all government contracts for goods and services would be subject to a 3 percent income tax withholding was problematic because it would have reduced cash flow for small companies as they struggle to pay their bills in the weak economy. The withholding would have effectively sidelined money that could be helping to boost the economy and job creation. While the date the requirement would take effect had been delayed several times, H.R. 674 eliminates it altogether, allowing businesses to decide when and how to allocate their own funds and helping to keep the economic recovery on track.